BW Confidential - Issue #1 - April 2010 - (Page 22)

Insight: make-up Category overview Market makeover Color cosmetics put in a respectable performance last year. BW Confidential analyzes brand and retailer strategies to push the category to the next level by Oonagh Phillips he make-up market may not be doing great, but it is putting in a better performance than other beauty categories. According to Euromonitor, global make-up sales increased by 3.29% in 2009 to reach $42.65bn. The market in North America fared the worst, with sales down by 0.83%, to $10.20bn. The prestige segment in the US saw a decline of 5% last year to reach $3.16bn, says NPD, although sales started to pick up again at the beginning of the year and are now positive. Western Europe saw an increase of 3.39% to $10.98bn, while emerging markets continued to post the highest growth rates—Latin America, for example, saw sales climb by 17.84% to reach $4.63bn (Euromonitor). T Despite their higher price points, foundations have performed well, as have nailcare (+7.46% on a global level), eye make-up (+5.04%) novelty items and combination kits. “Blockbuster sets are doing well, especially those that have new innovations. They offer a lot of value, although it is not just about price—if there is something really new, the consumer will buy it,” says NPD vp and global industry analyst Karen Grant. Even high-priced make-up items (over $50) with an interesting design or original formula did well. One example is Guerlain’s Rouge G lipstick, which was launched at the height of the recession and retails at €38, around 45 to 50% above the market price. Apart from a few one-off products, retailers say that make-up’s performance suffered from a lack of innovation in the category. There were no major product breakthroughs, similar to the vibrating mascaras which came out in 2008. Analysts say this is because last year there were few open to buys at retailers. They also point out that in 2009 companies were forced to make tough decisions about their color cosmetics brands: Estée Lauder Companies shuttered its Prescriptives business, P&G pulled its Max Factor brand from the US and Hard Candy changed its positioning from selective to mass in the US and inked a distribution agreement with Wal-Mart. There were, however, some major introductions. P&G launched its first make-up line for 22 April 2010 - N°1 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #1 - April 2010

Update - Brand and retail recap
Take note - Market facts, figures and trends
Launches - The latest fragrance, skincare and make-up launches
Best of BW - Market highlights
Interview - Sephora international & development md Olivier Schaeffer
Insight: make-up - Category overview
 - Industry viewpoint
 - Trends
Wellness report - Overview
 - Industry roundtable
 - Spa case studies
Travel retail - Europe: little chance of a rebound
Market watch: Western Europe - Regional analysis
 - Germany
 - France
 - UK
 - Spain
 - Italy
Radar - Six up-and-coming beauty brands
Packaging special -  Industry analysis
 - Innovation
Last word - UBS analyst Nik Modi's outlook for 2010

BW Confidential - Issue #1 - April 2010